Rental Purchase Loan

A hard money rental purchase loan is an excellent way to start or grow a portfolio. At Direct Investors, we work with investors who want to close quickly and make strong offers when great opportunities come up, which is something a traditional lender cannot offer. Unlike traditional lenders, we care very little about credit scores but instead base loans on the assets (property) and the experience of the investor.

This type of loan is designed for investors who need short-term financing to purchase and/or renovate an investment property that will be turned into a rental. A rental purchase loan is typically an interest-only loan with a balloon payment, usually after five years, for small loan payments during the life of the loan.

Rental Purchase Loans

Advantages of a Hard Money Loan

Why turn to a hard money loan when buying a rental property ? Here are some advantages:

  • The loan may fund the entire amount to complete the deal
  • Fast closing within a week
  • Secure property below market value
  • Asset-based lending means investors with poor credit can qualify
  • Loan can be refinanced to a longer-term Fannie Mae loan later to buy a long-term rental and fix it up with almost no out-of-pocket costs
Hard Money Purchase Loans

Investors typically use a short-term hard money loan to buy an investment property below market value, perform repairs and rent it out. Experienced investors can obtain a loan from Direct Investors with closing costs rolled into the loan. After six months, the loan may then be refinanced with a traditional bank, while the investor continues collecting rent payments that cover both the mortgage payment and provide cash flow. When used properly, this form of financing allows you to have your cake and eat it, too, by financing purchases and repairs with virtually no out-of-pocket costs!

If you are ready to get started, apply for a rental purchase loan today from Direct Investors. We work with first-time and experienced investors with the most competitive rates around!